 "Holcim rejects 42-bn euro merger with Lafarge")
In a massive setback to €42-billion merger between two European cement giants, the Holcim board of directors today rejected the merger agreement with French firm Lafarge in the present form.
In a statement, Holcim said the combination agreement could no longer be pursued in its present form, and has proposed to enter into negotiations in good faith around the exchange ratio and governance issues.
"Lafarge has indicated that it refuses to renegotiate, except the exchange ratio. Further details will be communicated in due course," the Swiss company said.
In a statement, Holcim said the combination agreement could no longer be pursued in its present form, and has proposed to enter into negotiations in good faith around the exchange ratio and governance issues.
"Lafarge has indicated that it refuses to renegotiate, except the exchange ratio. Further details will be communicated in due course," the Swiss company said.
The company also said it decided that the agenda for the annual general meeting of April 13, this year will only contain topics related to Holcim Ltd. This decision has been taken due to pending anti-trust clearance in the US and India, pending EU approval of CRH as purchaser of divested assets, as well as delays in the social process in France.
The company had said the future LafargeHolcim group would have sales of $44 billion of yearly sales and a significant industrial base in Europe. The closing of the deal was expected in the first half of this calendar year.
The company had said the future LafargeHolcim group would have sales of $44 billion of yearly sales and a significant industrial base in Europe. The closing of the deal was expected in the first half of this calendar year.
Holcim subsidiary ACC was trading at Rs 1,589 a share on the BSE, down 1.46%.
Earlier, as part of merger plan, both Holcim and Lafarge had announced a list of proposed asset disposals as part of their planned merger on July 7th last year.
A divestment committee was set up by both companies which has drawn up a list of proposed asset disposals, to anticipate potential competition authorities’ requirements.
A divestment committee was set up by both companies which has drawn up a list of proposed asset disposals, to anticipate potential competition authorities’ requirements.
The two companies were proposing to sell cement plants in Austria, France, Germany, Hungary, Romania, Serbia and the UK in Europe.
Apart from European assets, both companies were also selling assets in Canada, Mauritius, Philippines and Brazil (see chart: Assets on sale). Both companies will continue to consider whether divestments would be necessary where there might be overlaps or depending on regulatory requirements. The entire divestment process was to be completed subject to the closing of the merger between Holcim and Lafarge.